Uber Shuts Down Yellow Cab Service in New York

By Cameron Scott 

uber, mobile apps, social appsThe mobile cab-hailing company Uber announced Tuesday that it has shut down its yellow cab service in New York, but will keep its town car service running.

Uber has evidently met with forces that aren’t appear ready to be disrupted: unions and taxi medallion bureaucracies.

“New York’s Taxi and Limousine Commission put up obstacles and roadblocks in order to squash the effort around e-hail, which they privately have said is legal under the rules,” co-founder and CEO Travis Kalanick wrote in a blog post.

According to the post, Uber’s yellow-cab beta didn’t work because users didn’t have access to enough cabs, and the commission refused to make more available.

Uber has run into regulatory hurdles in metro Boston and San Francisco, but is currently allowing users to hail cabs by phone in both cities.

The San Francisco-based company hopes to re-introduce yellow cab service in New York next year, Kalanick wrote.